Gov. Hochul Signs a Bill To Allow Certain Retailers To Buy and Resell Wine and Liquor

Gov. Kathy Hochul recently signed a bill to allow certain retailers to buy and resell wine and liquor. This bill signing makes a change to the state’s liquor laws that are some of the oldest in the country, not seeing many updates since the post-prohibition era. 

Under the state’s previous liquor law provisions, retailers like bars, restaurants, and taverns had no flexibility to immediately replenish their stock when they ran out of wine and liquor. Their only choice was to arrange for a purchase and delivery from their wholesaler, which typically involves increased costs at the last minute. The new law makes changes to address this issue by allowing bars and restaurants to buy and resell small amounts of wine and liquor from local stores. 

State Sen. James Skoufis, a Democrat representing parts of Orange County and a lead sponsor of the bill in the Senate, said this new law will have a significant impact on small businesses. 

“What this means for all of these restaurant owners and bar owners is potentially five to ten thousand dollars per year in savings. Money kept in their pockets, not having to spend on the surcharges and upcharges by large alcohol distributors,” said Sen. Skoufis. 

The key provisions of the law would allow bars, restaurants, and taverns to purchase up to six bottles of wine or liquor per week for resale and consumption from a liquor store or other licensed off-premises locations.

The provisions would also extend to licensed on-premises locations hosting or catering a private event.

Assembly Member Marianne Buttenschon, a Democrat representing Utica and a co-sponsor of the bill, said in a statement that being able to respond to consumer demand is essential for small businesses. 

The new law has long been supported by a variety of advocacy groups, including the New York State Restaurant Association. 

“The passing of the retail-to-retail bill represents a meaningful win for hospitality businesses across the state. This common-sense bill provides bars and restaurants with the flexibility to purchase and resell small quantities of wine and liquor from off-premises retailers when facing mid-week shortages,” said Melissa Fleischut, President & CEO of the New York State Restaurant Association, in an official statement. 

The bill also recently received support from the New York State Liquor Authority (SLA). 

“New York’s restaurants and bars work hard every day to serve their customers, and this common-sense new law gives them a safety net when inventory runs low so they can continue to operate. It’s a win for our small businesses, which are the heartbeat of our local economies, and for the people who live and dine in our communities,” said Lily Fan, SLA chair, in a statement sent to WMHT. 

Shelby Noel, owner of The Arsenal Reserve restaurant in Watervliet, NY, said that while she doesn’t run into situations too often where she runs out of liquor and needs an immediate replenishment, it’s good to have the option. 

When asked if this new law could be helpful to Noel and her business, she said, “Heck yeah.”

Noel said this new law could be very helpful for restaurants to have a backup plan. 

“You never know, like what happens if I get a big party or something and I only have four bottles of Pinot Grigio, and then I only need to go get four,” said Noel.

Some state lawmakers speculate that this new law could be beneficial for local liquor stores as well. 

“You’re really getting a benefit on both ends of the transaction here–the folks purchasing these additional bottles, the restaurateurs, and the bars and tavern owners, but the folks that they’re purchasing from are also seeing new, completely new, additional business,” said Skoufis. 

Sundeep Patel, manager at the New York State Wine & Liquor Warehouse, argues he isn’t sure how much this will benefit them because restaurants and bars will still primarily stick with ordering from their wholesale suppliers. 

Patel said it has the potential to increase sales, but most restaurants will stick to planning with their suppliers to avoid running out. 

“I don’t know how much they’re going to practice this. They may do it every now and then, but only if it’s a real emergency,” said Patel. 

Michael Correra, owner of Michael Towne Wine & Spirits, agreed, saying he doesn’t think this will benefit their sales. 

“I don’t really see an increase in sales because restaurants and bars do this already illegally for years,” Correra said. 

He also said, however, that it is a good step to formally legalize this issue. 

“The last thing you wanna do is make that bar a criminal by having to run out to a local liquor store to fill a few bottles so they can stay in business,” Correra said. 

The bill has seen many versions over the years and failed to pass both houses. Lawmakers stressed that making any changes to the state’s liquor laws is always a big challenge. 

 But this year, the bill passed nearly unanimously in both houses with bipartisan support. 

Small business economy issues aren’t always common ground where Democrats and Republicans see eye to eye, but on this bill, lawmakers from both sides of the aisle said they worked well together. 

“I give a lot of credit in the Senate to Senator Borrello from Western New York, who, himself, his family owns a small business, a restaurant in that part of the state, and he was very helpful corralling a lot of the Republicans in the State Senate to understand the importance of this, and to get behind and support this legislation,” said Skoufis. 

Sen. Skoufis added that this is one of those increasingly rare opportunities where both sides of the aisle were able to come together because the bill, he said, “just makes sense.” 

State Sen. George Borrello, a Republican representing parts of the Finger Lakes, said as one of the only members of the state legislature with a liquor license, this is an issue he understands very well. 

Borrello said there are fewer and fewer small business owners in the state legislature, and it’s important to have those voices. 

“This was definitely an issue that made it easier for us to come together as Republicans and Democrats because it is about small business,” the senator said. 

Borrello is a partner in Sunset Bay Beach Club & Cabana Sam’s Grill and a co-owner of Village Italiano.

Borrello said being in the restaurant and bar business is about hospitality, and not being able to replenish liquor on a Friday night means loss of sales. 

“The restaurant business is typically the weekend business. Well, the wholesalers aren’t open on the weekends, and they’re not open at night either. So if I need to go out and buy a bottle of rum because I’m out of rum, to get me through the weekend, right now, it is illegal for me to do so,” Borrello said. 

Borrello stressed that the new law is about providing good customer service. 

“When someone shows up and wants something that you’re out of, that could cost you not just that customer but certainly the sale that evening. And potentially people decide to leave because you don’t have the wine that they like or the brand of liquor,” said the Senator. 

Borrello added that wholesalers charge things like split case fees and delivery fees. The senator said in cases where restaurant owners only want six bottles of a wine or liquor, they can avoid those extra fees with this new law. 

Borrello said that while no restaurant or bar will change their purchasing completely and shift from wholesale suppliers, the new law will give small business owners more options for replenishment and smaller purchase orders.

The new law is set to take effect starting at the beginning of March.